What decides if a project gains the attention of the entire market or gets lost in the shadows? Here’s a simple 5-step checklist to identify high potential projects early.
More often than not the anticipation of a project comes down to the quality and effort of the art.After all, that is the foundation of what decides most NFTs initial value.
Is there a famous artist behind the project? Does the art resemble another project that has been successful? Is the art unique and different to anything you’ve seen before?
Market participants usually speculate on the art and reveal which is why it's one of the key components of assessing the potential short-term success of a project. While projects rarely share the full art collection prior to mint, you can usually find sneak peeks to assess the quality, detail and possible traits.
Who are the founders?
Have they previously built a successful web2 or web3 company or have relevant web2 experience that can be translated to web3?The founders are at the helm of a project's success and ultimately what most retail investors are investing in - their vision.
Founders that have prior experience give investors confidence that they have the competency to deliver on their promises.
Investors may also speculate on their network within the web2 or web3 space that can support the long-term success of the project or lead to newsworthy collaborations.
It is becoming increasingly harder for NFT projects to stand out amongst the noise across the dozens of new projects minting each day.
That is why having a high-quality “shop window” can help attract the attention of investors and allow projects to shine through.
Beautifully designed and smooth functioning websites are becoming more prevalent in new projects to separate them from others.
Websites that have a “wow” factor create instant curiosity to the lore behind the project and demonstrate they most likely have a long-term vision and pay attention to detail - something the market is craving more now than ever.
Are people excited for the project?
This conversation can be happening within the project's discord, NFT communities or on Twitter. Understanding if people are genuinely excited for a project's mint and reveal is a great metric to determine their success potential.Are renowned NFT investors and social media influencers talking about the project genuinely and organically or is the project being shilled in a way that comes across disingenuous?
Searching the project's name on Twitter and in communities can give you a feel of the anticipation by the market to determine if the project is being spoken about positively, and therefore able to gain the interest needed to succeed.
5. Drop Mechanics
Looking ahead to when a project is minting, considering their minting mechanics can give you an insight as to whether they have a chance at capturing the attention of investors.The key components are: price, supply, whitelist and public sale allocations. It goes without saying that competitive pricing to the lower end has a higher chance of getting more investors interested. The same can be said for lower supply projects where they have a higher potential of more demand.Projects that structure their mint to create higher true unique ownership % typically perform the best on secondary and up to their reveal if all the other 4 steps above are met.
There are many layers you can explore within each of these 4 points but each serve as a great base metric to assess the potential of a project ahead of their mint.
Bookmark and save this 5-step checklist the next time you’re analyzing if a project is potentially worth investing in!